Under what circumstance does the Aerus Franchise Agreement automatically terminate?

According to Aerus's 2025 Franchise Disclosure Document, the termination of the Franchise Agreement results in the automatic termination of any licenses and agreements the franchisee has with Sales Representatives and Outlet Licensees. This means that when the agreement between Aerus and the franchisee ends, all related agreements with those parties also end immediately.

This provision ensures that upon termination of the franchise agreement, Aerus maintains control over its brand and distribution network. It prevents former franchisees from continuing business relationships with sales representatives or outlet licensees who might still operate under the Aerus name or system, potentially causing confusion or quality control issues.

For a prospective franchisee, this highlights the importance of understanding the conditions under which the Franchise Agreement can be terminated. It also means that if the agreement is terminated, the franchisee will need to notify all Sales Representatives and Outlet Licensees that their agreements are also terminated and that they must take steps to discontinue representing Aerus. This could have implications for the franchisee's relationships and obligations with those parties.

Furthermore, the franchisee must ensure that all parties understand their obligations upon termination, including ceasing the use of Aerus's trademarks and confidential information. This coordinated termination process is designed to protect Aerus's brand and customer relationships while ensuring a clean break from the franchisee.